I feel privileged and honored to reach you through this 33rd Annual Report of theCompany. It gives me yet another opportunity to thank you all for being the patrons ofthe Company and continually reposing faith in it. Your continuous support gives themanagement immense strength and confidence and inspires us to strive towards thecontinuous growth of the Company.
In 2015 global economic activity remained subdued; and the recovery was at a slowerpace. The global economy grew at a rate marginally higher than 3 per cent in 2015. Theslowdown in economic activities in emerging markets and developing economies along withdecline in oil prices and tightening of monetary policy in developed countries haveinfluenced the slow growth rate in 2015. Outlook for 2016 for global economy is also notvery encouraging. Global growth is projected at around 3.2 percent in 2016. The recoveryis projected to strengthen in 2017 and beyond driven primarily by emerging market anddeveloping economies. Recent global events such as the exit of UK from EU and terroristattacks in some of the European countries may have some negative impact on the growthrecovery. In the long run the global economy is expected to recover though slowly.
On the other hand the Indian economy has marched ahead with its growth story. Indianeconomy grew at 7.6% during 2015-16 as against 7.2% for the previous fiscal. Growth ratein the 4th quarter of 2015-16 was at 7.9% almost hitting the magical 8% mark. Buoyed bystrong macro-economic fundamentals positive business sentiment and pro-growth monetary&fiscal policies of the government while being supported by good monsoon forecastthe economy is expected to grow at a rate close to 8 per cent in 2016-17. Overall thefuture outlook for India in short to medium term is very promising.
The auto industry recorded a modest growth in the last fiscal. As per SIAM report theauto industry grew by a modest 2.58%. However despite a challenging year the autocomponent industry grew at a very good rate of 8.8% in 2015-16. "V With signs ofrecovery in the auto market and prospects of a better A monsoon the component sector isexpected to grow at a higher rate during 2016-17 and it may even touch double digitgrowth rate. The _ auto component industrys long-term growth prospect continues tobe healthy in India.
The last fiscal was also a good year for the Company. Though the turnover of theCompany grew at a very modest rate due to robust cost control the PBT has been increasedto Rs. 15.29 Crores as compared to Rs. 7.53 Crores for the previous year. The Board ofDirectors of the Company has recommended a dividend of 10% on the paid-up capital of theCompany for shareholders' approval in the ensuing Annual General Meeting. It isheartening to see the Company in dividend paying terms again. In the current fiscal alsothe Company is expecting to grow significantly. The Company has already announced some newprojects which would contribute to the business growth. Company has also obtained some newbusinesses in the current year which would also push the growth rate up. With yourcontinued support the Company hopes to do better in the currentyear as well.
I take this opportunity to thank all the employees of the Company who have continuedto be the backbone of the Company. Their untiring efforts have made it possible for theCompany to grow healthily in spite of some tough times in previous years. I also thank allour customers vendors and shareholders who remained very much a part of our growth story.We seek their continued support in coming years also. I would also like to congratulateeach member of the OMAX Family for their continuous support to the Company. Last but notthe least I wish all the stakeholders of the Company a good monsoon and very happy andprosperous festive seasons ahead.
Jatender Kumar Mehta
(Chairman cum Managing Director)